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Beyond the hype : Separating ambition from reality in i4.0

Beyond the hype : Separating ambition from reality in i4.0


The fourth IndustrialRevolution (i4.0) isupon us. And some manufacturers are already taking thelead.This report explains what they are doing to secure value and create competitive advantage in today’s environment.


Everyone wants to talk about i4.0. From industry conferences and magazines through to boardroom tables and shareholder meetings, i4.0 is at the top of the agenda. The pressure on executives to adapt and compete is tremendous. 
But there is also a lot of hype. Projections for the i4.0 market run into the trillions. Forecasts for potential value creation are eyewatering. Revenue expectations — at manufacturers and at service providers — are flying high. Depending on who you talk to, the disruption for value chains, employees and business models may be fundamental.

 In this environment, executives at manufacturing companies need to separate hype from reality. They need a clear picture of the current risks and opportunities. And they need to understand what their peers and competitors are doing to drive value and capture competitive advantage. 

At KPMG, we want to help manufacturing organizations separate hype from reality. So, we sat down with some of the world’s leading manufacturers, suppliers and innovators to benchmark their i4.0 maturity and find out what is really happening with i4.0. We conducted maturity assessments, talked to executives and walked the factory floors (you can find out more about our benchmarking approach on page 19 of this report). And, in doing so, we identified several key aspects that are separating the i4.0 leaders from the followers. 

This report shares our findings. It offers a realistic perspective on the current state of i4.0 adoption and readiness across the market. It identifies how today’s market leaders are taking advantage of comprehensive i4.0 strategies to make changes to their business models, operating models and value chains. And it offers practical advice for those striving to adapt and compete in a technology-driven marketplace. 

Indeed, what we found was that — while most manufacturers are certainly investing into i4.0 capabilities and technologies — few have achieved the scale and integration required to drive enterprise value from i4.0. There are many working towards creating the ‘factory of the future’ or digitalenterprise, but none that yet apply those capabilities across all of the corners of their operations. Most are still experimenting with discrete pilots or trialing point solutions. Some have yet to start developing their roadmap for integrating i4.0 into their business and operating models. 

We believe that the time for smallscale i4.0 experimentation is coming to a close. Indeed, to win in tomorrow’s competitive environment, we believe that manufacturers will need to start being bolder in their vision, strategies and actions. And we hope this summary report of our i4.0 maturity assessments provides executives with some ideas on how to start.

On behalf of KPMG’s global network of Industrial Manufacturing professionals, we would like to thank those organizations and executives that participated in this i4.0 maturity benchmarking exercise. Your insights and experiences offer valuable context for today’s rapidly changing manufacturing environment.
 
To learn more about KPMG’s maturity assessments or to discuss your organization’s roadmap for i4.0, we encourage you to contact your local KPMG member firm.

                                                   Courtesy:
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